The Great Leap
Under the shade of a mango tree, 51 farmers from Diffun, Quirino, dreamt of a better life for themselves and for others in 1988. With a seed fund of P5,200, those 51 farmers formed a cooperative called the Diffun Saranay and Development Cooperative (DISADECO). DISADECO has since grown into an organization which benefits more than 35,000 members and has assets of one billion pesos. DISADECO’s success story is one that is firmly rooted in sound values, servant leadership, member empowerment, and strategic partnerships.
Sound Values, Effective Operations
DISADECO’s success stems from the steadfast adherence of its leaders and members to the Coop’s core values. Words like INTEGRITY, ACCOUNTABILITY and DISCIPLINE are not mere slogans and blurbs. Rather, these are integrated into every aspect of its operations and at the various levels of the organization.
DISADECO recognizes that these values are critical to its continued success. It is thus a must to plant these values as early as each member’s application for membership, continuing through the pre-membership education seminar. These values are meant to ensure the member’s growth and maturity in the Coop.
And these values bear fruit, as shown by DISADECO’s increasing income. Leading this growth are the robust lending services for DISADECO’s members. These include loans for petty cash, emergency, salary, and regular loans (i.e. housing improvement, educational purposes, hospitalization, and lot purchase). At the same time, DISADECO maintains its primary character of being a farmers' cooperative by providing production loans for rice and corn as well as animal raising and production. Finally, loans for farm inputs and farm machineries are extended to boost agricultural productivity.
Outside of these, DISADECO also lends to small and medium enterprises. It also branched out to offer self-actualization loans which cover appliance/cellphone loans, birthday/wedding/graduation loans, travel and vacation loans, and even car loans.
DISADECO’s financial innovations ensure the safety of investment, liquidity, optimum fund utilization, and an admirable return of investment. The top management is engaged in a sustained effort to constantly find ways to lower loan interest rates. This rate is now at 12 percent per annum - down from the previous rate of 18% - as the capability of members for savings and deposits increases. Significantly, it decided, in 2006, to decrease reliance on external borrowing and to instead operate using internal resources.
When the coop started to branch out in 2012, the premise was to bring DISADECO services closer to its members. About a year after came the fifth branch, serving more members in both the Cagayan Valley Region and the Cordillera Administrative Region. Currently, DISADECO has 8 branches operating in the provinces of Isabela, Quirino and Nueva Vizcaya.
Each branch has its own gasoline station, bread and coffee stations, EC (LPG) gas stores, and money transfer services. DISADECO also has 5 farmers’ centers, a hardware store, a grains and processing center, a food terminal, 2 hostels, and a resort and sports complex. It also provides training and transportation services.
SERVANT LEADERSHIP
Ariel Castres , a former OFW and now a business-owner of an EC gas store in Bayombong, Nueva Vizcaya joined DISADECO in 2006 because of the Coop's fast growth. He attests to the distinct character and culture of DISADECO. To him, DISADECO stands out in creating healthy relationships among and between employees, members, and Management. Ariel says fair treatment and warm reception are but minimum standards to expect whenever he transacts business with DISADECO employees and even outside their offices.
Officers, directors, and Management serve the members with respect and integrity, by honoring their commitments and leading by example. The five-member BoD actively works as a team, where each member contributes and adds value to DISADECO. Their competence and expertise facilitate the emergence of ideas, while their objectivity allows them to make firm decisions, fully aware that the welfare of the general membership is above their personal interest.
There is no preferential treatment in DISADECO – the management and officers can proudly say that no one in the top-levels of Management is related by consanguinity or affinity. Any other factor that could impair their objective and effective service is also prohibited. With that, rules are evenly enforced, and no special privileges are extended to officers and top management when they avail of DISADECO loans and services.
All of this is borne out by the realization of the leadership that the Coop is bigger than their individual selves. This, in turn, ensures continuity. For its succession plan, DISADECO relies on capacity building trainings and mentoring, as well as its Laboratory Cooperative where members' children, 17 years old and below, are recruited and trained. The Laboratory Coop has its own BoD as well as training and workshops on financial literacy and management, accounting, and livelihood trainings to guide them. Management also grooms potential leaders among the regular members who receive capacity-building trainings. Close mentoring is practiced in all levels of the organization. The current COO for example, started from being a loans clerk and rose to his current position as a product of these processes.
DISCIPLINE and Democracy
DISADECO rewards good deeds. Members in good standing enjoy all benefits of membership and enjoy better interest rates for their share capital. At the same time, effective employees’ performance merits promotion while erring employees with 3 consecutive poor performance ratings become candidates for termination. If ever officers and directors have delinquent accounts, or are found guilty of violating policies, they are expelled and perpetually banned from running for any office within the coop.
Akin to the exercise of democracy and equitable rights/benefits in DISADECO is the practice of accountability and transparency. All branches submit daily financial reports to the main office. This system yields efficient financial monitoring and analysis by Management, enabling them to swiftly resolve emerging problems and decide on critical issues and problems.
Consequently, financial transactions are transparent. DISADECO regularly publishes its financial statements. Bidding for outsourced services and contracts are open. For its projects, management prudently purchases materials. If ever employees manipulate prices, they are promptly sanctioned, if not terminated.
OWNERSHIP and Members' empowerment
Members are cognizant of their ownership and their contribution to DISADECO's growth. One member can say “bagitayo daytoy” (We own this.) when referring to DISADECO assets or “bilyonaryo tayo" (We are, collectively, billionaires). Members contribute by patronizing DISADECO products and accessing its services through deposits (time and fixed) and savings such as regular, birthday, travel, christening, wedding, graduation, and even Christmas savings. These services, in turn, promote the concept of thrift and savings and produce progressively growing returns.
The members’ trust for DISADECO is evidently high. They are confident that their contribution is reciprocated, and any business endeavor or decision works for their welfare and interest. For example, gasoline stations were established to serve farmer-members who rely heavily on gasoline to operate their farm machineries. The management sells at a lower price to reduce the farm production cost for farmers who bear the brunt of oil price hikes.
This remarkable stakeholder-first orientation is also manifest in the BoD-approved policy to employ skilled members in all DISADECO projects, to the exclusion of non-members. In return, employees and workers receive commensurate wages and benefits.
DISADECO empowers its members by providing learning opportunities through training on financial literacy, simple bookkeeping and even livelihood seminar-workshops such as mushroom production and processing, tinapa (smoked fish) and soap making. Members also get personal advice and mentoring. Interestingly, any group of members can make formal proposals to Management in case they seek further growth and development through a particular training. They can rely on Management to seriously consider such requests and approve the same when appropriate.
All these actions can be traced back to the word SARANAY, which means “help” and “community work”. When the COVID-19 pandemic hit the Philippines, DISADECO assisted not only via care packages and through its SARANAY plan, but it provided a one-time condonation of past due penalties to alleviate members' financial challenges due to the pandemic. When typhoons strike, automatic disbursements of economic assistance or ayuda is given to members.
Partnership with Government and other groups
DISADECO’s evolution as a strong and stable organization, is supported by its partnerships with various government agencies, private groups and non-profit institutions for capacity-building projects or direct assistance. At the same time, DISADECO looks for opportunities to soften the effects of disadvantageous government policies and programs. Such was their experience under the Rice Tarrification law. When DISADECO learned about unfavorable impact of the law, it led efforts to access the PhP 10B fund for the Rice Competitive Enhancement Program for and in behalf of its farmer-members.
In addition, LGU accreditation helps in partnerships with community efforts that are aligned with DISADECO's mission. Membership to various government bodies enables it to access government assistance. In doing so, however, DISADECO takes special steps to steer clear of politics, thus maintaining its independence and integrity. The Coop’s Officers and Management have instead, given more weight to camaraderie internally, thereby eliminating any bickering and discrimination based on differing political beliefs.
Right now, DISADECO assets are firmly secure while income is increasing. The BoD’s humble, albeit debatable, assumption is that they are far from achieving their dream of making lives better. What is beyond dispute is that they are not about to rest on their laurels and will continue to dream of other big things for the future.
Insert Story of a farmer
Elizalde Arellon or Zaldy was a 23 year old jeepney driver when he joined DISADECO in 1991. He is the son of one of the 51 pioneer farmer-members of DISADECO and lives in Saguday, Quirino Province. Upon approval of his membership, Zaldy, along with 20 other members, promptly traveled from Saguday to Diffun to get a loan. Zaldy borrowed two thousand pesos to buy spare parts for his jeepney's improvement. Because he is is also a farmer, Zaldy has been annually accessing an emergency loan of ten thousand pesos for his farm. These loans serve as his lifeline during lean months of farming when cash flow becomes a problem. He now has a backyard piggery and a convenience store.
He considers DISADECO as his dependable Saranay (help) in life. In return, he pays diligently to avoid penalties. He values regularly saving to attain security for his Mutual Aid Plan (death aid benefit) and Saranay plan (hospitalization benefit). These benefits are vital to his family. Part of the loan pre-deductions goes to maintaining the healthy state of these benefits.
He considers himself as a responsible member. He buys farm inputs from DISADECO farmers’ center because of lower prices, and he gets patronage fees in return. He actively participates in DISADECO activities and is well informed of developments in the Coop.
DISADECO is now an integral part of Zaldy’s life. He can lean on it when a crisis strikes and he can afford the low loan interest rate, a far cry from banks in Santiago, Isabela which give loans at very high rates and have cumbersome processes.
He is delighted with DISADECO’s growth and the fact that it has attained PhP 1B in assets. He is not surprised that members follow DISADECO rules and policies because they are confident with the capability of its leaders and the stability of the Coop.
